Tags: Spetrino | jobs | taxes | cut

If We Want to Create Jobs, Shouldn’t We Talk to Job Creators?

By    |   Friday, 24 Aug 2012 08:09 AM

The problem we face in the United States is that many members of Congress have never started their own business and don’t understand how to create jobs.

President Barack Obama himself has never had a job outside of politics, and many of his friends have experience in academia, not real-life experience.

Vice President Joe Biden has spent his life in Washington, as has presumed Republican Vice Presidential candidate Paul Ryan, although at least Ryan has been a budget hawk who is one of the few realistic politicians to admit that Social Security and Medicare are destined to go broke without major reforms.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

Mitt Romney, like him or not, has actually balanced budgets, created jobs and worked with members of the opposite party, but many Americans seem satisfied with the status quo.

Many supporters of the president stay the stimulus he chose kept us from a Great Depression.

The fact is that spending $787 billion to create or save 1 million to 2 million jobs is spending almost $400,000 to $800,000 per job, which is a poor use of taxpayers’ money.

After surveying and reading the suggestions of more than 400 business owners, I came up with three changes that actually will stimulate the economy, which I will share with you over the next few weeks.

The first is to cut the tax rates for all corporations that have profits of less than $1 million by 10 percent. This is simply an act of good faith that tells the small business owner, who has risked their life’s savings in many cases, that the government appreciates all their hard work and effort.

Unlike congressmen and bureaucrats, who hire people with the taxpayers’ checkbook, and members of the General Services Administration, who have taken lavish trips on the taxpayers’ dime, these hard-working men and women spend all their own hard-earned money to try and keep their business afloat.

There were bailouts for many big businesses, but it’s these hard-working small business owners who historically create many of the jobs in America. These folks have no lobbyists looking out for them. Many are hard-working folks who have risked their life’s savings to build something for their families and have been demonized by this administration as not paying their fair share and needing to share their wealth.

The tremendous amount of economic uncertainty has made employers less willing to hire people.

Healthcare reform and the administration telling business owners their personal taxes will be raised has caused many small businesses to pull back or simply not hire anyone else.

By cutting taxes, the small businessman will finally feel that the politicians in Washington are eager to help this country out of its worst economic slump since the Great Depression.

Many will argue that this will raise the deficit. The fact is, the multiplier effect of this savings will be felt throughout the economy. Small businesses will have more capital and incentive to expand and grow.

America takes in presently more than $2 trillion in federal income taxes, which is larger than the entire gross domestic product of almost every country in the world.

However, the government spends more than $3.5 trillion and refuses to make the tough changes to cut spending, including cuts to Social Security and Medicare, which are scheduled to go broke in the future unless they are reformed.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

When Presidents John Kennedy, Ronald Reagan, George W. Bush and Bill Clinton cut taxes, the total amount of tax revenue to the Treasury increased for the next three years.

In fact, despite all the criticism of Bush and his policies causing the economic slump in America, the facts show a much different picture.

Reagan and Clinton are considered the best presidents for economic progress, but the fact is, tax receipts for the each of eight years runs of Reagan, Clinton and Bush were the highest under Bush.

Many people in the media choose to ignore these facts, but ignoring them doesn’t make them any less true.

Next week we will continue this discussion.

About the Author: Bill Spetrino

Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

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2012-09-24
Friday, 24 Aug 2012 08:09 AM
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